Railroads, bridges, airports and ETFs

Countries worldwide are dedicating vast amounts of  money to infrastructure spending over the next five years  and there are easy  avenues to prosper from this spending  with ETFs. A recent  white paper by Eric J. Gerritsen on  The Journal of Commerce Online provides a brilliant snap  shot of the infrastructure boom that awaits.

Eye Popping Numbers

According to Gerristen’s White Paper, the U.S. will spend $150 billion of the government’s stimulus funds on infrastructure. Other developed nations like Germany, Australia, Great Britain and Canada are all planning large amounts of infrastructure spending as well. In addition, emerging market nations such as China and India are planning to spend obscene amounts to get their countries into the 21st century. India alone is planning to double the number of its major international airports in the next decade. China also is planning very aggressive airport development. This is not to mention countries like Chile rolling out new roads, schools and stadiums with their $4 billion infrastructure plans and Brazil’s $212 billion spending on railways, roads and airports.

ETF Opportunities

On June 19, 2009 iShares rolled out an Emerging Market Infrastructure (ticker EMIF) fund to join Powershares Emerging Markets Infrastructure Fund (ticker (PXR) in the same space. Additionally, for those not willing to go the emerging markets route take a look at iShares Global Infrastructure (ticker IGF) or SPDR/FTSE Macquarie Global Infrastructure Fund (ticker GII).  Obviously, the need for infrastructure in the developing world is much greater than the developed world and hence provides an extraordinary opportunity.  Keep in mind though that the U.S. has done very little infrastructure spending in the last 40 years and also presents some great opportunities.

No chart for iShares Emerging Market Infrastructure (ticker EMIF) as it is one day old

Powershares Emerging Markets Infrastructure Fund (ticker PXR) is well above its 200 day EMA

via Railroads, bridges, airports and ETFs.


About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at: http://benchilibowl.wordpress.com http://zyaada.mp

Posted on June 25, 2009, in Bank Stocks, Financial Markets, Infrastructure, iShares, Obamanomics, TARP, US and tagged , , , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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